It will not come as too big of a surprise to learn that the overall DEX trading volume is declining. Despite May being a very successful month for all decentralized trading platforms, June is far less spectacular. The ongoing cryptocurrency market slump certainly contributes to this decrease in trading volume.
Monthly DEX Volume Plummets
There are always peculiar developments in the world of cryptocurrency and blockchain. Under most circumstances, lower asset prices generate an increase in global trading volume. This time, however, the opposite has come true. All exchanges note a decrease in activity, including from whales and retail investors. Moreover, it now appears decentralized exchanges note a similar trend, which is somewhat surprising.
For DEX platforms, the month of May 2021 was rather interesting. It is the month with the highest DEX trading volume in history. Over $172 billion in volume was generated by Uniswap, Sushiswap, Bancor Network, and others. An awe-inspiring feat, considering how the average monthly volume was well below $70 billion in the months prior. Such explosive growth spared industry-wide enthusiasm.
This month, however, things look rather bleak. The volume is only the decline across the board, even though Uniswap still outpaces competitors by a landslide. Uniswap can still process billions in volume even during times like these, remaining well ahead of Sushiswap and 0x Native. As this gap remains in place, there is no DEX competition to speak of.
The gap between Uniswap and Sushiswap has grown larger very quickly. They are the only two platforms with over $1 billion in weekly volume, yet Uniswap’s numbers are more than five times higher. Although this is not entirely surprising, it confirms interest in alternative DEX solutions wanes. That is a bit unfortunate, as more competition for volume will always prove healthy.
Unique Address Leaderboard
When exploring DEX metrics, it is worthwhile to look at some unusual details. For example, the number of unique addresses per platform can often indicate the popularity of decentralized exchanges. As expected, Uniswap is ahead of the pack, with over six times the number of unique addresses 1inch has. On the other hand, Sushiswap only ranks fourth in this metric.
Sushiswap’s case may indicate how addresses represent more volume per trade than other platforms. However, it is impossible to verify if that is the case today or in the past and future. Fewer unique addresses is never a healthy sign for long-term growth. If this number keeps decreasing for some platforms and increases for others, the EX landscape will continue to evolve.
It is also remarkable to see two aggregators surpass SushiSwap in unique addresses. Both 1inch and 0x API are ahead of that DEX, with 1inch generating over $2 billion in weekly volume. For 0x API, the volume is half the size of 1inch, with Matcha and Tokenlon falling even further behind..